ADVANCED

CRYPTOCURRENCY
TRADING
PEOEYE Academy Of Business Education
(Pvt) Ltd

INTRODUCTION
 GET INSPIRED
 I see Bitcoin as ultimately becoming a reserve
currency for banks, playing much the same
role as gold did in the early days of banking.
Banks could issue digital cash with greater
anonymity and lighter weight, more efficient
transactions.

Hal Finney
What is Cryptocurrency
 Cryptocurrency is a type of currency
that’s digital and decentralized.
Cryptocurrencies can be used to buy
and sell things, and their potential to
store and grow value has also caught
the eye of many people and investors
now
 EVOLUTION OF MONEY

Barter System METALS METAL COINS PAPER MONEY

eg: Silver, Gold

CRYPTOCURRENCY ELECTRONIC MONEY PLASTIC CARDS

eg : Credit cards, Debit Cards
Cryptocurrency Vs Fiat Currency
 Digital medium of exchange.
vs  Physical medium of exchange.

 Limited supply.  Unlimited supply.

 Each cryptocurrency has a set  Government can produce as

maximum. needed.

 Produced by computers.  Issued by a government.

 Decentralized.  Centralized.

 Not controlled by any government  Issued and controlled by law and

or entity. banks.

 Value determined by supply and  Value determined by the market

demand and regulation
 BLOCKCHAIN
 A blockchain is a decentralized ledger
of all transactions across a peer-to-
peer network. Using this technology,
participants can confirm transactions
without a need for a central clearing
authority.
 Need to do a
transaction

Scoob Shaggy

Can I trust Can I trust

him.? him.?

Question

Scoob Shaggy
 Middle man
For Helping
them

Scoob Bank Shaggy

 Centralized Ledger
Person Amount
Scoob 2 - 1
Shaggy 2 +1
Scrappy 2

Scoob Bank Shaggy

Scrappy
 Cutting the middleman
Person Amount
Scoob 2 - 1
Shaggy 2 +1
Scrappy 2

Scoob Bank Shaggy

Scrappy
 Decentralized Ledger
Person Amount
Person Amount
Scoob 2
Scoob 2
Shaggy 2
Shaggy 2
Scrappy 2
Scrappy 2

Person Amount
Scoob 2
Shaggy 2
Scrappy 2

Scoob Shaggy

Scrappy
 Decentralized Ledger
Person Amount
Person Amount
Ai654hgd 2
Ai654hgd 2
C321jhdc 3
C321jhdc 3
Anonymous W982gfs 1
W982gfs 1

Person Amount
Ai654hgd 2
C321jhdc 3
W982gfs 1

Scoob Shaggy

Scrappy
How to view that
ledger
https://www.blockchain.com
https://etherscan.io/
 Blockchain Demo

https://andersbrownworth.com/blockchain/
https://txstreet.com
 Miner
 Miner is an actor who participates in
cryptocurrency transactions, and in
turn, plays a crucial role both in
creating new cryptocurrencies and in
verifying transactions on the
blockchain
What is inside
Data

Bitcoin Block Example

FROM :

To :

Amount :
 How it works

Hash : 1Z8F Hash : 6BQ1 Hash : 3H4Q

Previous Hash : 0000 Previous Hash : 1Z8F Previous Hash : 6BQ1

 Types Of wallets
Mobile wallets Web wallets

 Trust Wallet Web wallets are hot wallets that are always connected to the internet and can be
 Safepal accessed via different internet browsers. All crypto exhanges are belong to here
 Mycelium
 Coinomi  Some non-hosted wallets: ( You control private key)
 MyEtherWallet
 MetaMask
Paper wallets Safepal
 Some hosted wallets: ( You don’t have access to the private key )
 Binance (The Best)
 Not very relevant anymore  Coinbase
 CEX.io
Desktop wallets Hardware wallets

 installable software packs that are available for most of the  Hardware devices build specifically for handling private keys and public
desktop operating systems such as Mac, WindowsSome non- addresses.
hosted wallets: ( You control private key)
 Exodus
Eg: Safepal
 Bitcoin Core
 Electrum
 Public Key
PUBLIC KEYS, WHICH ARE PUBLICLY KNOWN AND ESSENTIAL FOR
IDENTIFICATION

Private Key
THE PRIVATE KEY IS WHAT GRANTS A CRYPTOCURRENCY USER OWNERSHIP
OF THE FUNDS ON A GIVEN ADDRESS. THE BLOCKCHAIN WALLET
AUTOMATICALLY GENERATES AND STORES PRIVATE KEYS FOR YOU
 A crypto exchange is a
platform on which you
can buy and sell
Crypto cryptocurrency. You can
Exchange use exchanges to trade
one crypto for another
 Types of exchanges
 CENTRALIZED EXCHANGES

 are online trading platforms that match buyers and sellers via an
orderbook. They function essentially the same way as online brokerage
accounts, which is why they are so popular among investors.

Ex : Binance

 DECENTRALIZED EXCHANGES

 are autonomous financial protocols powered by smart contracts

that enable crypto traders to convert one digital asset for
another with all transactions viewable on the blockchain.

Ex : PancakeSwap or Uniswap
 Cryptocurrency vs Token

 CRYPTOCURRENCY

They have their own blockchain

Ex : In Ether run in the Ethereum blockchain

 TOKEN

They depend on other blockchains

Ex : SHIB , Chain link , tether runs on ethereum block chain
 BTC/USD

Base currency Quote currency

We have to spend X amount of USD to buy 1 bitcoin

 ETH/BTC

Base currency Quote currency

We have to spend X amount of BTC to buy 1 ethereum

 Glossary of terms
1 Bitcoin = 100 million Satoshi’s

Exchange- A marketplace which allows buying and selling of Bitcoin or other

coins.

FOMO- Fear of Missing Out. BAD.

Total supply- The amount limit of coins that will ever exist. Supply limit of Bitcoin is 21
million.

Bull market- is the condition of a financial market in which prices are rising or are expected
to rise

Bear market - is the condition of a financial market in which prices are falling or are
expected to Fall

Market Cap: the value of a company/asset/Crypto that is traded, it is calculated by

multiplying the total number of shares/Coins by the present share/Coin price.

Bubble- A situation where the prices are irrationally high as compared to the actual value of
the asset.

FUD- Fear, Uncertainty and Doubt

Day trading- Taking a position in the market, either buy or sell and exiting it the same day.

Swing trading- This method looks for buying and selling positions in a weekly range.

Positional trading- The aim is to buy monthly lows and hold them for days, weeks or sometimes months.

Leverage- Refers to the extra amount of asset bought or sold, over your capital
limit. E.g., If you buy $2000 of Bitcoin with a Capital of $1000, you have a leverage of 2x.

Margin- The amount of funds required to open a leveraged trade.

Long Position- Buy low sell high

Short Position- Exact opposite of Long Entry. Sell high buy back lower.

Volatility- It is the percentage movement in price of an asset over a period.

ROE: Return-on-Equity. This is calculated by the actual capital employed in a trade and not
through leverage.

OHLC: Open, high, low and close

Altcoin- All coins except Bitcoin, Ethereum

Bull trap- A technique used by market makers to buy large volumes of an asset, spiking the
price. Retail will believe this is a breakout and join in. Market maker will then sell
aggressively, take profits and drive prices down, cause stops and liquidations.

Bear trap- is just the opposite of a Bull trap

Ask/Bid: Sell orders are asks and Buy orders are Bids.

Support and resistance- A support is a zone/line where we can expect the price to bounce backup.
Resistance is a line/zone where we can expect the price to rebound downwards. We will
study this in the next lessons

Walls: Extremely large orders at a range.

Demand Zone- A zone with huge buy orders.
Supply Zone- A zone with huge sell orders.

Stop-Loss: Order that is triggered when the price goes below this point. Used to cut losses.
Liquidity- The measure of how actively the coin is being traded in the market.
Uptrend- A price is said to be in an uptrend when it's making higher highs and higher lows.
Downtrend--Opposite of uptrend, the prices here make lower highs and lower lows.
Consolidation- A period where the price is ranging in a well-defined region.

Correction- A correction is a fall in price after making a new peak or an upwards rally.

Sideways market- an indecisive market which isn't leading to a breakdown or a Breakout,

And not giving any signals in either way.

Sell off- Profit taking after a rally in price, which leads to lowering of price of the asset.

Rally- An upward trend leading to increase in price of the asset. Can happen in both bear
and bull market.

Accumulation: The process by which one builds a position in an asset.

Pattern- A chart pattern is a predefined shape that have been historically studied by
technicians. Traders try to use these previous performance statistics to predict future price

movements.
Fractal: A pattern of Price movement which has occurred earlier and might occur again.

Limit Order: Order will execute at a predefined price, if the market riches that price.
Market Order: An order to buy or sell at the current price level, executed immediately.

Time Period/ Time Frame- The time spread of each candle stick in a chart.
Common time periods are 15min,30 min, 1Hour, 4 Hour, daily.

ATH- All-time highs prices.

DCA: Dollar cost average. Trying to lower the average entry cost of a position by slowly
buying the asset at reducing rates.

Liquidation- When a trade is closed buy the broker as there is not enough margin required
to carry the trade.
THANK YOU